Bar-Gill, OrenBen-Shahar, Omri2015-06-292014Oren Bar-Gill & Omri Ben-Shahar, Exit from Contract, 6 J. Legal Analysis 151 (2014).2161-7201http://nrs.harvard.edu/urn-3:HUL.InstRepos:16883006Exit from contract is one of the most powerful consumer protection devices, freeing consumers from bad deals and keeping businesses honest. Yet consumers often choose transactions with lock-in provisions, trading off exit rights for other perks. This article examines the costs and benefits of free exit, as compared to the lock-in alternative. It argues that present regulation of exit penalties is poorly tailored to address concerns about lock-in, particularly in light of increasingly ubiquitous market-based solutions. The article also calls (regulatory) attention to loyalty rewards, which are shown to be as powerful as exit penalties, and equally detrimental.en-USJournal Article2015-06-2910.1093/jla/lau003